Ten officials of Indian Overseas Bank (IOB), two of them retired, were today arrested in an alleged Rs 6-crore fraud case, police said. The officials, posted in different branches of the public sector bank in the city, have been accused of defrauding the Hyderabad Metropolitan Development Authority (HMDA) through fraudulent withdrawal of over Rs 6 crore.

The bank officials fraudulently passed, cleared or altered cheques of HMDA in connivance with the prime accused Lunavath Shankar Naik and other accused Y Vijay Mohan Krishna and Raju Ahmed. All three were arrested in March, it said.

According to the police, the accused defrauded HMDA during 2008-2016 by forging cheques issued in favour of a private security agency, Sai Security Services.

HMDA authorities had issued 55 cheques, to the tune of Rs 76,67,735, in the name of Sai Security for their services to the state-run body.

But Naik, in connivance with Mohan Krishna, an audit officer in HMDA, and Ahmed, opened fake account in the name of Sai Security Services. They altered some of the cheques issued by HMDA and swindled an amount of Rs 6.03 crore in connivance with the arrested IOB employees (both serving and retired), the release added.

They were booked on charges of cheating and forgery, among others under IPC, and placed under arrest, the police added.

read about the arrest of 10 officials of Indian Overseas BANK. I am not surprised because i am a victim of this bank. i did not pay a bribe of Rs. 15 lacs to the branch manager of IOB, M.I.Road, Jaipur in 2008. He made my company NPA . I am happy such officials are nabbed.